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Crude Oil Weekly Price Forecast – crude oil markets testing major support

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market has broken down a bit during the course of the week, reaching into a major support level. That being said, the market is currently worried about quite a few different things at the same time, not the least of which would be the coronavirus and a lack of demand coming out of China as a result. Because of this, oil markets have been battered, but we are at an area that should continue to offer quite a bit of support based upon historical price action and of course the fact that the $50 level is massive due to it being a large, round, psychologically significant figure.

Brent

Brent markets also have fallen hard and into the major support level that is the bottom of the trading range. With this being the case, the $57.50 level is the beginning of support down to the $55 level underneath. Even below that, the $50 level will be very supportive, so looking at this market, it appears that we are going to trade near the $55 level in order to try to break down below it and towards the $50 level. All things being equal though, Brent is much more sensitive to China in the Middle East then WTI is, and therefore Brent will probably be a bit of a laggard when it comes any type of recovery. Ultimately, I like the idea of waiting for another week or so to see what this market does, as the next candlestick should be very telling.

This article was originally posted on FX Empire

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